Commonwealth of Australia Explanatory Memoranda

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SUPERANNUATION LEGISLATION AMENDMENT (SUPERANNUATION SAFETY AND OTHER MEASURES) BILL 2005

                            2004-2005-2006




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                 SENATE




     SUPERANNUATION LEGISLATION AMENDMENT
(SUPERANNUATION SAFETY AND OTHER MEASURES) BILL
                     2005




    SUPPLEMENTARY EXPLANATORY MEMORANDUM


             Amendments to be moved on behalf of the Government


   (Circulated by authority of the Minister for Finance and Administration,
                       Senator the Hon Nick Minchin)
                                              2


AMENDMENTS OF THE SUPERANNUATION LEGISLATION AMENDMENT
   (SUPERANNUATION SAFETY AND OTHER MEASURES) BILL 2005


OUTLINE OF AMENDMENTS


Current provisions in the Bill

The Superannuation Legislation Amendment (Superannuation Safety and Other
Measures) Bill 2005 (the Bill) includes amendments to three Acts. The amendments are
a consequence of the Government's Safety of Superannuation reforms as well as changes
required to facilitate the application of negative interest rates to the Commonwealth
Superannuation Scheme (CSS). The Bill also includes provisions to validate the payment
of benefits to particular members of the CSS. In addition the Bill makes a number of
minor amendments to include members of the staff of the Boards of the CSS and the
Public Sector Superannuation Scheme (PSS) in the delegation powers of the Boards, and
to allow the Boards to send to employers any document or written information that, under
the relevant scheme Act or any other Act, they are required to send to the member.

Proposed Amendments

The Bill was introduced into the Senate on 18 August 2005. While most of the
provisions were to commence on the day the Bill received Royal Assent, the provisions
in Schedule 2 of the Bill enabling the Board that governs the CSS to declare negative
earnings in the CSS have a specific commencement date of 1 January 2006.

Debate of the Bill did not resume in the Senate in the 2005 Parliamentary year. For
prospective commencement of the relevant provisions it is necessary to amend the
commencement provisions contained in Schedule 2 of the Bill. The amendments are
intended to change the commencement of the provisions to either the first day (1 July) of
the financial year if this is the day of Royal Assent, or otherwise the first day (1 July) of
the next financial year following Royal Assent.

Financial Implications
The amendments to the Bill have no financial implications.
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NOTES ON AMENDMENTS TO THE SUPERANNUATION LEGISLATION
AMENDMENT (SUPERANNUATION SAFETY AND OTHER MEASURES)
BILL 2005


Amendments 1 and 2 - Date of commencement of provisions

Amendments 1 and 2 change the date of effect of a number of provisions in Schedule 2 of
the Superannuation Legislation Amendment (Superannuation Safety and Other
Measures) Bill 2005 to either the first day (1 July) of the financial year if this is the day
of Royal Assent, or otherwise the first day (1 July) of the next financial year following
Royal Assent. Those amendments ensure that the provisions will remain prospective,
will provide CSS members with a familiar reference point for the changes and facilitate
reporting of the protected account balances to members through the annual member
statements.